Analysis of the Factors Affecting Opt-Out Preferences of Employees Automatically Enrolled in Private Pension System in Turkey
Öz
Auto enrolment in the private pension system is a practice implemented in many countries in recent years to increase coverage rates. The application was put into effect in Turkey for a similar purpose in 2017, but in the last three years, it has performed below its potential due to the very high opt-out rates.
A survey was conducted with 405 employees who were included in the auto enrollment system (AES) at least once aims to analyze the factors affecting the opt-out preferences of employees who are automatically enrolled in the private pension system. The participants were asked questions about the AES Trust, Financial Management Behavior, Financial Wellness, Future Time Perspective as well as their socio-demographic information. The results obtained were analyzed by logistic regression method and their relationship with participant's opt-out preferences was investigated.
The model results showed that there is a positive and significant relationship between the AES Trust and AES Not Opt-out/Opt-out. No significant relationship was found between the other independent variables and the dependent variable. The opt-out preference in the system is mostly caused by the state of trust in AES, which is an emotional indicator.
The following should be the priority when new policies are developed to increase coverage rate of the auto enrollment system in Turkey: Individual benefits of the system should be emphasized to the participants. The negative perceptions of the society regarding the system should be corrected, and they should be informed about the fundamentals of the system in a transparent manner.
Anahtar Kelimeler
Private pension, Private pension system, Auto enrollment, Auto enrollment opt-out
Kaynakça
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